Please ensure Javascript is enabled for purposes of website accessibility Rivera bill to lower electricity costs, increase reliability through grid-scale battery storage advances from committee

Rivera bill to lower electricity costs, increase reliability through grid-scale battery storage advances from committee

HARRISBURG, June 17– Legislation aimed at reducing electricity costs and increasing reliability for Pennsylvania households and small businesses by requiring electric utilities to set targets for and procure grid-stabilizing battery storage cleared the Pennsylvania House Energy Committee today, the bill’s prime sponsor, state Rep. Nikki Rivera, D-Lancaster, announced.

“Increasing demand for energy for cloud computing, artificial intelligence and other emerging technologies is rapidly driving up electricity costs for Pennsylvanians,” Rivera said. “My legislation offers a practical, proven solution to help keep the lights on and electric bills affordable by requiring electric utilities to set targets for and invest in grid-stabilizing battery storage.”

House Bill 2380 would require Pennsylvania’s largest electric utilities to install 3,000 megawatts of battery storage by 2033. The Pennsylvania Public Utility Commission would assign the shares of the 3,000 megawatts based on the service load and annual peak demand of each electric company with more than 600,000 customers. 

Rivera’s plan would help lower costs by reducing congestion on the electric grid, limiting the need for expensive infrastructure upgrades and reducing reliance on costly peak-period power purchases. The bill also includes competitive procurement requirements and regulatory oversight to help ensure that projects deliver value for ratepayers.

“This bill is a smart investment in a stronger, more reliable and more affordable energy future for Pennsylvania families and businesses,” Rivera said.

Electricity costs are often driven by peak-hour demand, when electric utilities must rely on expensive “peaker” power plants that quickly ramp up to prevent grid failures. Battery storage systems store electricity when demand and prices are low and discharge it when demand is highest, helping stabilize the grid and reduce overall costs.

Battery storage would help lower costs by reducing congestion on the grid, limiting the need for expensive infrastructure upgrades, and cutting reliance on costly peak power purchases.

Rivera noted that the commonwealth’s energy usage grew nearly 3% in 2024, and she expressed concern over how projected industrial demand growth projected over the next five years – particularly by data centers – would strain Pennsylvania’s energy grid.

She pointed out the role that battery storage played in preventing blackouts in extreme summer heats in California in 2021 and Texas in 2023. Rivera said that investment in battery storage is critical given PUC has warned that the commonwealth’s grid could soon face widespread outages, reduced reliability or even blackouts as early as this year.

“Battery storage can help ensure that our grid remains reliable and resilient as demand grows and extreme weather puts greater pressure on the grid,” Rivera said. “A prolonged power outage during a blizzard or other severe weather event would be devastating for Pennsylvania families and communities.”

Rivera pointed out that 13 states have already adopted battery storage targets to lower costs, balance supply and demand, and improve grid flexibility, including Maryland, New Jersey and New York.

“It’s time for Pennsylvania to join its neighbors and modernize its utility power system,” Rivera said.

House Bill 2380 is now with the full House for consideration.